Economists and business leaders who gathered behind closed doors last week with Finance Minister Joe Oliver to provide budget ideas were divided over introducing income-splitting for couples, and urged the government to find a way to get the Northern Gateway pipeline built.
Several policy ideas on taxes and the economy were discussed in the room, including a retooled approach to income-splitting and the possibility of creating a multi-billion-dollar fund to help win First Nation and community approval for the Northern Gateway oilsands pipeline, according to some of those present.
The federal finance minister’s summer policy retreat in Wakefield, Que. has become an important meeting and incubator of ideas for the Conservative government each year as it seeks input for the budget. Policy decisions such as the creation of tax-free savings accounts (TFSAs) have come out of the annual retreat, for example.
Oliver told reporters in Wakefield last week that the government is “talking about reducing taxes for Canadian families and individuals” as it prepares the next budget in advance of a federal election expected in October 2015.
Many of the 16 participants who met with Oliver and other federal officials voiced concern over the Conservative government’s promise to introduce income-splitting for couples with children under age 18 once the budget is balanced, suggesting it’s not the best approach for tax relief. However, several others supported income-splitting, say those who were there.
“Honestly, the group is divided (on income-splitting). Some think it is the best way to go, others say ‘no,’ ” said Sherry Cooper, former chief economist for BMO Financial Group who now runs her own consulting company.
The problem with income-splitting for couples with children, she said, is that it presumes one person makes significantly more money than the other, which often is no longer the case. “In two-income families, incomes can be pretty similar and then income-splitting doesn’t do anybody any good,” she said.
Cooper said her top recommendation to Oliver for the budget was for the government to double the maximum annual TFSA contribution to $11,000 for people aged 50 and older because a lot of people approaching retirement haven’t saved enough for their golden years.
Kevin Falcon, former B.C. finance minister and now executive vice-president of Anthem Capital Corporation, said it was clear from the meeting that Oliver and the government are interested in reducing taxes heading into the budget.
Falcon said his preference is for governments to introduce personal tax relief that will produce a “meaningful difference” for families. “You want to balance political commitments with what the best economic approach is going to be,” he said.
People in the room confirmed there were significant concerns raised about delays in building the Northern Gateway pipeline and other energy infrastructure, including the uncertainty raised by a recent Supreme Court decision and First Nations’ objections to the project.
The discussion led to what the federal government can and must do to help get energy projects built.
There was a suggestion and some discussion that the federal government should establish a multi-billion-dollar fund to help benefit communities and First Nations along the pipeline corridor – and ultimately help win approval for Northern Gateway – according to some people in the room who asked not to be identified.
Investing a few billion dollars in a fund could produce spin-off benefits to those communities for generations to come and help bring about certainty for infrastructure projects that doesn’t exist today, Oliver was told. Otherwise, Canada is at risk of losing potentially tens of billions of dollars worth of export opportunities for oil and liquefied natural gas.
“Don’t do this on the cheap,” the minister was told.
There was no indication of what proposals, if any, Oliver and the government might adopt for the budget.
The federal government approved the Northern Gateway pipeline in June, subject to 209 conditions imposed by the National Energy Board joint review panel, but some First Nations have vowed to block it.
A ruling later in June from the Supreme Court of Canada, which recognized a B.C. First Nation’s title to a specific piece of land, is expected to make it easier for First Nations to establish title over lands that were regularly used for hunting, fishing and other activities. The decision could have enormous ramifications for projects such as Northern Gateway.
“The problem is this ‘delay, delay, delay’: we’re getting very close to the point where our energy sector is going to be significantly negatively impacted,” Cooper said.
Falcon agreed it’s important for the federal government to provide leadership on helping build critical energy projects such as Northern Gateway and to reduce the growing uncertainty in the natural resources sector in Canada.
Canada’s potential of becoming an energy superpower “is at risk of being frittered away” because of court decisions and uncertainty over aboriginal land rights, he said.
“Only through federal government leadership, bringing all the parties to the table, and charting the path forward will we ensure that Canada doesn’t lose that opportunity,” he said.
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Source: canada.com/
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Several policy ideas on taxes and the economy were discussed in the room, including a retooled approach to income-splitting and the possibility of creating a multi-billion-dollar fund to help win First Nation and community approval for the Northern Gateway oilsands pipeline, according to some of those present.
The federal finance minister’s summer policy retreat in Wakefield, Que. has become an important meeting and incubator of ideas for the Conservative government each year as it seeks input for the budget. Policy decisions such as the creation of tax-free savings accounts (TFSAs) have come out of the annual retreat, for example.
Oliver told reporters in Wakefield last week that the government is “talking about reducing taxes for Canadian families and individuals” as it prepares the next budget in advance of a federal election expected in October 2015.
Many of the 16 participants who met with Oliver and other federal officials voiced concern over the Conservative government’s promise to introduce income-splitting for couples with children under age 18 once the budget is balanced, suggesting it’s not the best approach for tax relief. However, several others supported income-splitting, say those who were there.
“Honestly, the group is divided (on income-splitting). Some think it is the best way to go, others say ‘no,’ ” said Sherry Cooper, former chief economist for BMO Financial Group who now runs her own consulting company.
The problem with income-splitting for couples with children, she said, is that it presumes one person makes significantly more money than the other, which often is no longer the case. “In two-income families, incomes can be pretty similar and then income-splitting doesn’t do anybody any good,” she said.
Cooper said her top recommendation to Oliver for the budget was for the government to double the maximum annual TFSA contribution to $11,000 for people aged 50 and older because a lot of people approaching retirement haven’t saved enough for their golden years.
Kevin Falcon, former B.C. finance minister and now executive vice-president of Anthem Capital Corporation, said it was clear from the meeting that Oliver and the government are interested in reducing taxes heading into the budget.
Falcon said his preference is for governments to introduce personal tax relief that will produce a “meaningful difference” for families. “You want to balance political commitments with what the best economic approach is going to be,” he said.
People in the room confirmed there were significant concerns raised about delays in building the Northern Gateway pipeline and other energy infrastructure, including the uncertainty raised by a recent Supreme Court decision and First Nations’ objections to the project.
The discussion led to what the federal government can and must do to help get energy projects built.
There was a suggestion and some discussion that the federal government should establish a multi-billion-dollar fund to help benefit communities and First Nations along the pipeline corridor – and ultimately help win approval for Northern Gateway – according to some people in the room who asked not to be identified.
Investing a few billion dollars in a fund could produce spin-off benefits to those communities for generations to come and help bring about certainty for infrastructure projects that doesn’t exist today, Oliver was told. Otherwise, Canada is at risk of losing potentially tens of billions of dollars worth of export opportunities for oil and liquefied natural gas.
“Don’t do this on the cheap,” the minister was told.
There was no indication of what proposals, if any, Oliver and the government might adopt for the budget.
The federal government approved the Northern Gateway pipeline in June, subject to 209 conditions imposed by the National Energy Board joint review panel, but some First Nations have vowed to block it.
A ruling later in June from the Supreme Court of Canada, which recognized a B.C. First Nation’s title to a specific piece of land, is expected to make it easier for First Nations to establish title over lands that were regularly used for hunting, fishing and other activities. The decision could have enormous ramifications for projects such as Northern Gateway.
“The problem is this ‘delay, delay, delay’: we’re getting very close to the point where our energy sector is going to be significantly negatively impacted,” Cooper said.
Falcon agreed it’s important for the federal government to provide leadership on helping build critical energy projects such as Northern Gateway and to reduce the growing uncertainty in the natural resources sector in Canada.
Canada’s potential of becoming an energy superpower “is at risk of being frittered away” because of court decisions and uncertainty over aboriginal land rights, he said.
“Only through federal government leadership, bringing all the parties to the table, and charting the path forward will we ensure that Canada doesn’t lose that opportunity,” he said.
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Source: canada.com/
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